Gepy BULLISH PIERCING LINE in montly... anybody agree ?
The market moves down in a downtrend. The first black real body reinforces this view. The next month the market opens lower via a gap. Everything now goes, as bears want it. However suddenly the market surges toward the close, leading the prices to close sharply above the previous month close. Now the bears are losing their confidence and reevaluating their short positions. The potential buyers start thinking that new lows may not hold and perhaps it is time to take long positions.
Recognition Criteria:
1. Market is characterized by downtrend.
2. We see a long black candlestick.
3. Then we see a long white candlestick whose opening price is below previous month ’s low on the second month.
4. The second month’s close is contained within the first day body and it is also above the midpoint of the first month’s body.
5. The second month however fails to close above the body of the first month.
The market moves down in a downtrend. The first black real body reinforces this view. The next month the market opens lower via a gap. Everything now goes, as bears want it. However suddenly the market surges toward the close, leading the prices to close sharply above the previous month close. Now the bears are losing their confidence and reevaluating their short positions. The potential buyers start thinking that new lows may not hold and perhaps it is time to take long positions.
Recognition Criteria:
1. Market is characterized by downtrend.
2. We see a long black candlestick.
3. Then we see a long white candlestick whose opening price is below previous month ’s low on the second month.
4. The second month’s close is contained within the first day body and it is also above the midpoint of the first month’s body.
5. The second month however fails to close above the body of the first month.
KABOOM